ReactOS 0.3.0 RC1 has been released. Get it from the download page; the changelog doesn't seem up yet, so no information on any improvements. As for the code audit, it is at 90.5% complete. Read the associated Wiki page for more information.

I think they should do something with GUI bugs. Is it really so hard to implement GDI and create good controls? One is too much space between items on menubar. Fonts are at wrong positions. There are problems with sizes of components. It all looks very bad (for me). I think, those are bugs which already appeared in Wine.